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Orkla ASA — Earnings Release 2016
Apr 27, 2016
3703_iss_2016-04-27_21e29821-2a97-4373-a836-40d940f25050.html
Earnings Release
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Orkla ASA: Sapa (joint venture) - Announcement of results for the first quarter 2016
Orkla ASA: Sapa (joint venture) - Announcement of results for the first quarter 2016
Sapa is a 50/50 joint venture between Norsk Hydro ASA's former Extruded products
business area and Orkla ASA's Sapa (ex. Gränges) and is the global leader in
extruded aluminum solutions. The joint venture was established on 1 September
Underlying EBIT for Sapa increased significantly compared to the same quarter of
the previous year. Performance improved across all business areas mainly due to
the effects of the improvement programmes, increased share of higher margin
business, and positive currency effects from the weakening Norwegian krone
against the US dollar and Euro. In addition, a continued strong market supported
the North American operations.
Key Figures - Sapa (100%)
+-----------------------------+---------+---------+
| NOK million | Q1 2016 | Q1 2015 |
+-----------------------------+---------+---------+
| Sales volume (1,000 tonnes) | 349 | 353 |
+-----------------------------+---------+---------+
| Revenues | 13,905 | 14,134 |
+-----------------------------+---------+---------+
| Underlying EBITDA | 901 | 705 |
+-----------------------------+---------+---------+
| Underlying EBIT | 571 | 392 |
+-----------------------------+---------+---------+
| Reported EBIT | 655 | 201 |
+-----------------------------+---------+---------+
Orkla's share of Sapa's net income for the quarter was NOK 209 million compared
to NOK 45 mill. for the same quarter of the previous year.
Market comments
Compared to the same quarter of the previous year, demand increased by 3 percent
in North America as a result of increased building and construction activity and
strong automotive demand.
Compared to the same quarter last year, demand grew marginally in Europe. A
stabilising building and construction market contributed to this development.
Demand for extruded products is expected to seasonally improve going into the
second quarter of 2016 and also compared to the second quarter of 2015. In both
North America and Europe, aluminium substitution in the automotive industry is
contributing positively.
Orkla ASA
Oslo, 27 April 2016
Ref.:
Senior Vice President Investor Relations
Mattias Orrenius
Tel.: +47 983 66 334
Email: [email protected]
This information is subject of the disclosure requirements acc. to §5-12 vphl
(Norwegian Securities Trading Act)
[HUG#2007242]